From Bankruptcy to Debtholder Disneyland

How DDi's debtors bounded from rags to riches.

ON OUR BUMPY VOYAGE back from the abyss of the burst bubble many a strange thing has occurred, such as the inexplicable resurgence of certain Internet darlings. But nothing tops this tale of how several bondholders in an Orange County, California contract-electronics manufacturer parlayed their nearly worthless paper into the trade of a lifetime.

Investors in distressed debt are usually tickled pink to see returns on the order of 25% to 50%. Never in their wildest dreams would they expect grand slams multiplying their bets...